A new large merger in the telematics industry shows the way for further consolidation.

Cross Country Automotive Services (Cross Country), a provider of vehicle and driver services and programs, announced that it has acquired ATX Group.

ATX, based in Irving, Texas, is a strategic addition to Cross Country’s broadening service portfolio. The acquisition extends Cross Country’s telematics offerings and its ability to deliver vehicle and driver services to automotive, insurance, vehicle aftermarket and other consumer-facing industries. The acquisition also expands Cross Country’s client base and infrastructure to Europe and complements its presence in the China market. ATX currently serves several global automobile manufacturer clients (representing approximately one million vehicle owners) with telematics programs in Western Europe, the U.S., Canada and Puerto Rico.

The combined company brings nearly 50 years of intelligent solutions and experience of serving more than 76 million customers spread across leading automotive, insurance and other clients. It represents an expanded international network of state-of-the-art voice and data centers handling over 16 million calls annually, and experienced personnel who have developed, launched and managed private-label driver assistance programs focused on extending customer brand loyalty for their clients. The combined entity will generate revenues of more than US$ 400 million and has a highly diversified client base. It employs over 2,300 employees with four data centers and seven contact and CRM (customer relationship management) centers in Arizona, Florida, Massachusetts, Texas, Canada, and Germany.

"This is an important milestone for Cross Country. ATX’s technology, talent and clients complement Cross Country’s business and extend our ability to deliver best-in-class products and services to our clients," said Michael A Saxton, CEO of Cross Country Automotive Services. "ATX and Cross Country bring together their heritage and commitment to safety and security and the ability to quickly expand additional products and services while bringing scale through our combined operations that will accommodate the industry’s rapid growth. At the same time, Cross Country will continue to serve our clients with our dedicated and award-winning support of their brands and their most valued assets – their customers," said Saxton.

Steven A. Millstein, CEO and president, ATX Group, said, "The merged company gives automotive OEMs a clear choice in the connected vehicle service provider marketplace, between new entrants with power point portfolios and a company with extensive combined experience that has proven infrastructures, a long record of performance, delivery and customized solutions to meet variable business needs. Together we’re a company built around promises delivered, not merely on delivering promises."